Stock Market at New, All-Time Highs Following Strong Q4 Earnings, Market Breadth

Stock Market at New, All-Time Highs Following Strong Q4 Earnings, Market Breadth

Last week, the Nasdaq made an all-time high pushing past its previous highs from January 2022. This was before the Federal Reserve embarked on an aggressive campaign of rate hikes to curb inflation. In one respect, the tech-heavy Nasdaq is playing catch-up with the S&P 500 which has been setting new record highs over the last couple of months and is now more than 10% above its January 2022 levels.

 

While a major component of these advances is due to the strength in the 7 largest technology stocks and frenzy around the AI boom, it’s worth noting that the equal-weighted indices for the Nasdaq and S&P 500 also made new, all-time highs as well. It’s an indication that the bull market is expanding in terms of participation. It also leads to the conclusion that the market is strong from a bottom-up perspective as well.

 

Another way to assess the market’s strength from a bottom-up perspective is corporate earnings. With Q4 earnings season nearly in the books, it’s clear that earnings remain robust despite a host of macro headwinds. So far, 97% of S&P 500 companies have reported. 73% topped earnings expectations, while 64% exceeded revenue estimates. Overall, earnings were up 4% compared to last year, marking the second consecutive quarter of earnings growth, validating the bullishness of investors. 


Finsum: The stock market is making all-time highs consistently in 2024. The strength goes beyond the ascendant tech sector as equal-weighted indices are hitting new highs, while corporate earnings continue to grow despite an array of headwinds. 

  • earnings
  • bull market
  • Growth
  • s&p
  • nasdaq

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

    Tags

    More Related Articles

    Info icon

    This data feed is not available at this time.

    Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.